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Financial education: glossary for dummies

Financial education: glossary for dummies

Related imageAre you very green in the world of finance ? Do not know very well what is the balance, a budget, income, savings, etc.? Financial education is very important to have a healthy economy.

So if you are a “novice” or a beginner in the world of finance do not worry here we offer you a glossary of economic terms that will help you to develop better in the world of economics:

  • Save : Action that consists of saving part of the money or the profits that are had and not spending everything. The savings allow to have a healthy personal economy.
  • Savings : Action and effect of saving and therefore is the amount of money saved to use later.
  • Debt : Money that a company or a person owes to another person, a supplier or a bank.
  • Economize : Each of the techniques used, both in companies and in family economies, to spend less money and save money.
  • Expenses : All that money that people have to spend to buy goods or services.
  • Income : Amount of money a person receives. It can be as consideration for a job, a gift or for selling goods or services if it is a company.
  • Budget : Set of expenses and expected income for a certain period of time, which is usually a year.
  • Balance : It is the difference between debit and credit, that is, between income and expenses at a given time. It can be positive, if there is more income than expenses; negative, if there are more expenses than income; and null, when both are equal and the result is zero.
  • Transfer : It is a banking operation that consists of exchanging money from one bank account to another.
  • Payment : Money that is given to buy a good or a service or to extinguish a debt. It is the effective fulfillment of a due benefit.
  • Current account : Record of movements of money that a person has in a bank and that allows him to realize income, payments and to have money in cash immediately.
  • Bank Discovery : It is when a bank’s current account has a negative balance, that is, less than zero. More money has been spent than was in the account and owes that money to the bank. Commonly to an overdraft situation is called “having the account in red numbers”.
  • Money : It is the set of bills and coins legally established as a means of payment.

What do you think about the concepts that we have desgranado? Do you still believe that understanding the main economic terms is complicated? Tell us your opinion, we are waiting for you!